econ final

coins, paper currency, and checkable deposits

In the United States, the money supply (M1) is comprised of:

reduce the equilibrium price level, assuming downward flexible prices.

an increase in input productivity will

store of value

if you place a part of your summer earning in a savings account you are using money primarily as a

aggregate supply decreases and aggregate demand increases

in which of the following set of circumstances can we confidently expect inflation

the purchase or sale of government securities by the fed

open market operations refer to

medium of exchange

purchasing common stick by writing a check best exemplifies money serving as a

business cycle

recurring upswings and downswings an economy real gdp over time are called

200

refer to the above data, the equilibrium price level will be

f represents a prince level that would result in a shortage of real output of AC

refer to the above diagram, if aggregate supply is AS and aggregate demand is AD, then

panel (B) only

refer to the above diagram, in which AD1 and AS1 are the "before" curve, and AD2 and AS2 are the "after" curves. Cost-push inflation is depicted by

cyclical unemployment is about 2 percent

refer to the above information, if the natural rate of unemployment in scoobs is 5 percent then

102 million

refer to the above information. the labor force in scoobs is

6.9 percent

refer to the above information. the unemployment rate in scoob is

structural unemployment

susie has lost her job in a Vermont textile plant bc of import competition. she intends to take a short course in electronic and move to Oregon where she anticipate that a new job will be available. we can say that susie faced with

include resource princes and resource productivity

the determinants of aggregate supply

supply of money curve and the total demand for money curve

the equilibrium rate of interest in the market for money is determined by the intersection of the

doing all of these

the fed can change the money supply by

banks borrow reserves from one another on an overnight basis.

the federal funds market is the market in which

altering the reserves of commercial banks, largely through sales and purchases of government bonds.

the federal reserve system regulates the money supply primarily by

2

the level of productivity in the above economy is

by the government's ability to control the supply of money and therefore to keep its value relatively stable.

the money supply is backed

that rate of unemployment occurring when the economy is at its potential output.

the natural rate of unemployment is

Is the percentage of the labor force that is unemployed

the official unemployment rate

the price level to increase but not to decrease

the ratchet effect is the tendency of

a higher prince level will decrease the real value of many financial assets and therefore reduce spending

the real balances effect indicates that

Meduim of Exchange

the transactions demand for money is most closely related to money functioning as a

about 4-5 percent of the labor force is unemployed.

the united states' economy is considered to be at full employment when

1/required reserve ratio

the value of monetary multiplier is

whatever performs the functions of money extremely well is considered to be money

to say money is socially defined means that

Residential Construction

upon which of the following industries is a restrictive monetary policy likely to be most effective

reduce worker morale and work effort, and thus lower productivity.

when aggregate demand declines many firms may reduce employment rather than wage because wage reduction may

firms individually fear that their price cut may set off a price war

when aggregate demand declines the prince level mat remain constant at least for a time because

open market operations

which of the following tools of monetary policy is flexible and able to affect bank reserves quickly and by specific amounts

cyclical unemployment

which of the following types of unemployment is directly associated with insufficient overall demand for goods and services

with both fiscal and monetary policy

Stabilizing a nation's price level and the purchasing power of its money can be achieved:

Real domestic output falls

A recession is defined as a period in which

the construction industry

During a severe recession, we would expect output to fall the most in

leftward shift of AS curve

Graphically, cost-push inflation is shown as a:

$510 billion.

If actual GDP is $500 billion and there is a negative GDP gap of $10 billion, potential GDP is

banks; other banks

The Federal funds rate is the interest rate that _______ charge(s) ______.

actual gdp and potential gdp

The GDP gap measures the difference between:

slopes upward and to the right.

The aggregate supply curve (short-run):

determinants of aggregate demand

The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the:

federal reserve notes

The paper money used in the United States is:

inversely

The purchasing power of money and the price level vary

structural and frictional unemployment

Which of the following constitute the types of unemployment occurring at the natural rate of unemployment?

change in price level

Which one of the following would not shift the aggregate demand curve?

exchange checkable deposits for the IOU's of businesses and individuals

banks create money when they

difference between actual reserves and required reserves

excess reserves refers to the

move in the same direction as the federal funds rate

generally the prime interest rate

rise, causing household and businesses to hold less money

if in the market of money the quantity of money demanded exceeds the money supply the interset rate will

Sell government securities, raise reserve requirements, and raise the discount rate

if the federal reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to

foreign purchases effect

if the price level increases in the united states relative to foreign countries then Americans consumers will purchases more foreign goods and fewer US goods, this statement describes

2.50

if the price of each input is $5 the per unit cost of production in the above economy is